tv Keiser Report RT May 25, 2019 3:30pm-4:01pm EDT
bit coy it's all happening it's all happening right now stacy in the meat space things are coming apart however the meat space is ruled by tweets from donald trump and donald trump is continuing apace the air of globalization is over at least for now we've had many periods throughout the last 4 or 5000 years of globalization then d. globalization and we're now going through a period of d. globalization we see these trade wars hotting up you know. basically blacklisted huawei the 2nd largest mobile phone builder operator manufacturer in the world and they're also way ahead of any western competition in terms of 5 g. technology they do however while way requires many many parts many chips from u.s. companies and basically they're not allowed to send anything to qual way though then via tweet as well trump has basically given them
a 90 day window to maybe allow their leaders of china to negotiate a trade deal this is his art of the deal right i mean the key phrase here is to globalization and you're right you know it ebbs and flows and we get globalization before world war one and then world war one and then we had de globalization before world war one that led to war of war one and then world war 2 yes exactly therefore ipso facto at the moment it's de globalizing so the ripples in buckles in the global economy because of volatility and uncertainty and there's no way to hedge against that really. in the us you want to go long opiates well certainly one would go a long gold between or silver and this has been throughout history of globalization whenever an empire. or starts to fall leading up to world war one it was of course
the british empire falling apart and losing power and losing control and no i guess most great powers don't like to lose control and they like to have the power and they like everybody to obey their orders and once they stop obeying so easily and they become disobedient the empire lashes out and then starts diggle is ation they stop trade they stop that especially that when the train starts allowing their competitors to rise above the victorian era there was globalization and then in. free world war one then you behind this and headed angst as germany without powering them out manufacturing them out creating better better products out competing them you know trading around the world busy and doing better right now we have a period where the germany still in the middle as us germany and china they manufacture everything in the world or consume everything in the world though without those 3 powers much of the global trade would not be happening we also have
a chorus the united states via tweet threatening to wipe around off the map of course iran is very disobedient to the emperor does not you know pay what caesar is does not. render unto caesar what is caesar's and the u.s. feels like iran should be a little bit more compliant owner obedient and just give us their oil stop trying to think that oil under their ground happens to be theirs i think there was somebody like john bolton had once said or maybe it was john mccain had said you know they think that their oil is up there or is and it's not you well you know the thing about globalization you know of course post world war 2 era the bretton woods with the u.s. dollar is a world reserve currency is that it provided this blanket for globalization ok but then it also provided a way that social banks could collude to. make it easier for bad
actors to milk the system or built the system and that has led to the black press or the yellow best's in france an occupy wall street in the revolutions in cairo you know has that certain you know social bank related class of drain the system of vital capital so that has now led to a reaction so we're going to actually get to the u.s. central bank and their plans for the future because of course our competitor nation in the situation is china china comes up with long term plans and they have 5 year plans 10 year plans and this is part of the reason they've been able to outcompete us because we only have quarterly plans and whatever the shareholder dividends are that quarter and that's all we care about it's that has always that creates a long term result and consequence which is the dust realisation of america because shareholders were always going to as if they could extract the equity from u.s.
industry that was always you know be send over your jobs to china and china that was their plan and they were like thank you thank you all right hold just just in time mentality of globalization became extractive yes predatory yes you know the globalization itself as the problem whether that if you are but the a few abuse it then you screw things up it was only possible only possible post 971 to do this 1972 of course china becomes opens up to america you know nixon sends over his trade representative and then they end up becoming part of you know world trade and w t o n all that stuff after that but 971 is when we go off the gold standard so we could only do this extractive. post if we don't have any actual obligations to the rest of world no real gold or no real wealth is ever sent overseas to top u.s. tech companies begin to cut off vital huawei supplies. there is
a 90 day reprieve but of course they're afraid to get any sanctions or by the u.s. government or treasury so the top u.s. corporations from chip makers to google have frozen the supply of critical software and components while weight technology is complying with the trump and ministration crackdown that threatens to choke off china's largest technology company chip makers include intel qualcomm zylon x. and broadcom and they're. you know this is one of their largest customers as well way and now they're you know there will be results and consequences to the u.s. and u.s. corporations and shareholders at least maybe not employees though you know a lot of the folks have been warning that china has come up with a world beating technology and the huge corporate him with to back it and the scuttlebutt was no you know we are all the value added jobs here in america you know they manufacture but we design in california you know that's the apple phone but now huawei you know has emerged as
a. tech leader that is now defining this new era of 5 g. and you know 5 g. just like every previous 2 g. 3 g. 4 g. or every other protocol that's dominated global commerce ok this is the battlefield for the next generation and they have the pole position so i think 1st of all all the people who said that was not going to happen michelle happened we covered that about 10 years ago when we said that this would happen because the fact is it is the process of manufacturing whereby innovation happens this is why the long term plan of germany has always been to as well keep those jobs keep those you know precision technology high value added jobs in germany because they know as soon as he send it overseas you yourself domestically lose the ability to innovate that you can't teach innovation you have to just experience innovation and evade. it is
a result of failure and loser when you fail you often learn brilliantly there's no way to teach that in a classroom you just have to understand it's the process of watching a failure happen that one can learn and innovate right in america failure is not stigmatized but to wit. where in europe it is stigmatized people can sail and then have a lifetime of misery and it's very stilted in that way of course we are changing we are becoming more european here the mainstream media as we've pointed out certainly of the so called them or the democratic mainstream media is saying donald trump is a loser because his companies have failed and he's had losses which have made him rich but that's another story but in terms of bringing back jobs for america yes we should obviously have wealth creating jobs we should have manufacturing because that's where innovation happens the actual process of doing and making is where they all to me ultimate innovation happens so we need those but whether or not what
donald trump is doing is the right way and whether or not what are the long term consequences of that because we cannot have wealth creating jobs here and have the the world's reserve currency because in order to have the world's reserve currency and i feel that standard you need to send all your dollars because china can't print dollars germany can't print dollars so you need them to basically export to us more than we export to them so that they have dollars because that's the only way to maintain it we know that the one thing there's only one thing the federal reserve is worried about always and that is wages rising so that is the number one thing they fear because it's wages that compete with the capital accumulation of their member banks well so. well put. couldn't be more specific but you know side note interesting only in britain you know the. angling
with briggs it the same time the british steel goes into administration so there is a manufacturing company there that's your future if you are wanted to become independent and sovereign and how a world beating global export economy you wouldn't want british steel to go bankrupt but say they exactly this is what's happening so the mainstream media especially the democratic media will not ask will not provide context for what is going on in this trade war they'll just demonize china and when you look at china and they see that you see them accumulating gold they won't tell you the context of the significance and and ponder even questions about why they're buying gold and especially at this moment now the federal reserve is in the news again the fed is dusting off a q e replacement last used during world war 2 so of course the end of the last period of d. globalization was the last time we used this and that as the federal reserve governor lyle brainard on wednesday became the 2nd u.s.
central banker to talk about the possibility of targeting longer term interest rates as a new tool to combat the next recession is actually not so new the last time the fed conducted such a policy was during world war 2 to keep the cost of funding the war so. brainard she's you know her suggestion is that the concept is relatively simple if the fed's benchmark interest rate fell to 0 and the 2 year treasury was at 2 percent the fed could announce it intends to use its balance sheet to peg the 2 year at one percent rather than the market rate of 2 percent the general idea is that longer term rates spur activity right the risk and the reason this is not done is that you are exposing yourself to interest rate risk exponentially greater than if you have a shorter maturity in their portfolio of bonds for using to manage this economy so they're going to take another. there are huge basket of risk and so when interest
rates do go up as you pointed out the beginning of the show there is a cyclical nature to things there's the globalisation there's globalization there's lowering interest rates there's rising interest rates so when the interest rates rise hit the impact to the fed will be instantaneous death there there levers that there from sort of being leverage a $50.00 to $1.00 they'll be leveraged at 100 to one so one minute change in the value of that portfolio gives them of value. of good this is they got it they will work about much more coming your way. in the lake says and see forms part of
a high altitude nature reserve. it's one of the famous chito room internees years principal waterway starts its journey. but if you come down the sun down to the top to bottom i've got a septic tank up. it runs 300 kilometers from source to mouth and there are over $200.00 industrial facilities ranged along its bangers. and mash and your muscle. to do 3 things. i've selected out of them and to be in. the room here again over 4000 rice fields and supplies drinking water to 25000000 people. government forgets a pool or so made by so many of us about us a member of our people me at.
all. welcome back to the kaiser report i'm max keyser time out of to dan collins. dan colonies recently returned to america from doing business in china for 20 years is the head of research at heisenberg cap at all oh i love the firm stand walk alone at the back a max thanks if you're back there already dead collins they say nobody wanted to trade war talked about china and russia america so which side is losing
less than the other than well i would i would say when we would have to go back to when did the trade were start and who lost you know we've talked many times before max if you look at the city of detroit most of our rust belt studies are empty steel towns i've argued many times years ago that we lost a trade or been going on for decades most of the east asian economies in particular china are broken tiles economies they protect their own markets even our western allies like germany have much higher duties and we have against them example would be 10 percent on vehicles and we have a 2 percent against them so if i would say america lost a trade or now this recent i would call it a counterattack by trump finally the united states is fighting back for their own trying to read us realize the country with the steel tariffs and things like that china is definitely losing this 2nd round they are seen if you look at the real production and economic stats not g.d.p.
growth forget that they're going to grow 6.8 percent somehow every year they do it every year it's either $6.00 or 6 when you say oh nonsense it's not rio you look at car sales are down 24 percent even the high growth sectors and chinese economy e-commerce they're barely growing. most of. the big industrial type stuff is in pretty rapid decline because they're they're getting pinched from several areas one is the tariffs obviously but 2 is you know china is a middle income country now their labor rates are 5 times mexico 5 times iran 5 times southeast asia so we're already 5 years into a big exodus of manufacturing out of mainland china which is putting the squeeze on wow wow it's amazing that so much manufacturing is leaving china and now china's tariffs on western goods are allowed under the w t o the world trade organization
rules for quote developing nations so yeah it's time to sell a developing nation in your eyes bay so i just said i think the answer would be no right hey i absolutely know i've argued this china hasn't been a developing nation for at least a decade you know you look at all that the top 20 tech companies half are from china the other half are from the u.s. china is got some of the most advanced company that the largest economic market in the world there are 50 percent of most global markets you know when you make 5 times the amount of electric vehicles in the rest of the world combined the highest rail yeah there is a there's economic income gap but in china but the same thing in the u.s. so china has been hiding behind debbie theo they thought they may have successfully gained international trade system and they claim were developing countries we need 25 percent duties against you and usually a few percent against us so that's the game they've been playing it makes absolutely no sense american politician for
a decade have been ok last outsmarted you know i saw i saw an academic economists go to writing about well we're not going to ship mobile phones to china how many mobile phone you think we sell the china we sell nothing when they attack or the united states straight they have to go after so he you know the united states has many 18th century a condom. basically in the new free trade that's been going on for decades so now it's kind of face to this whole free workplace right waste also export a lot of garbage to china and they're clamping down on that you know the recycling in the u.s. wasn't busy allowed due to environmental laws america would actually export garbage to china but now china has said no more garbage and that's causing a lot of problems i mentioned germany a moment ago it's clearly not a veil developing nation and yet it apparently slaps u.s. manufactured cars a 25 percent tariff versus the 2 that happened tariff we place on german made cars is this just us oligarchs trading their short term gains for our long term losses
stand for the whole concept of free trade in barbados for years it doesn't really exist. it's an ideology you know it's a good idea out of you if everybody following it but at in the reality is nobody following it and if you look at germany as you mentioned in particular that is a very it's a capitalist economy but it's a very state run capitalism on a me but local governments own big share in the car makers in the industrial cooling factors in all these types of companies and. they have also protect their own workers the united states and the u.k. are kind of the remarks at the street trade they're the ones that don't protect their workers and they sacrifice them on the ideology of free trade we actually doesn't they're right and we know why they don't protect our workers because those wages go to the top 110th of one percent that are the machinations of the federal reserve bank and financial engineering now dan here's
a big topic the big topic to you are apparently some reports say that who weighs 5 g. technology is about 18 months ahead of that available by western corporations and at half the price can we compete down well that's going to be the interesting question china is leapfrogging. so fast that you know obviously you know the hyest look at the high speed rail they had 2012 they had none by 2016 they had more than the rest of the world combined. weiwei is a very innovative company 10 cent ali baba these companies are you know there's a host of different other types of companies in the e-commerce space genetic engineering i mean these guys are leading this field knowledge in many areas of technology in the world while he is indeed ahead of the west and that's what's happened when in the west we forgot about many factual forgot about real innovation we went to financial in it in an innovation in in payout though. i believe my
personal opinion is china will continue this technological steamroller and they will be ahead of us in many areas technically speaking pray now you know politicians here in america saul voters on shipping our jobs overseas by claiming that china china would never are they were forever true toil in the low value added jobs and they would never aspire to arise to the value added knowledge jobs in health apple phones are designed and california but made in china now did the chinese ever fall for this commie without a meme that china believed this cell over there as well then know china has a completely opposite world view of the united states in many ways they followed the east asian model of development where they you manufacturing to be that's the biggest job growth the technology that is employed in for instance car manufacturing is you know now state of the are in need all the. machine learning if
abilities the machine tools everything integrated. into logistics supply chains when there's so much technology in job and manufacturing they are still under the core concept that's absolute key in on top of that you build all the more advanced e-commerce in artificial intelligence these are also industries where. china's leading are point by they haven't forgot about the manufacturing it's absolutely you know united states is a nation of 330000000 and i've never heard a good argument how a nation of 330000000 with all the resources natural resources that the united states have how is it possible they can't make anything and it's ridiculous and this is these are the kind of. issues that are now coming out now kind of monitoring social media and checking out how the me moore's are going and in china apparently there is a video or if it is circulating about a basically crushing america china is about the crush america and this is becoming
a more kind of viral campaign and the kids are picking up on it what were we in that cycle i mean is this what what's that the attitude seems to be what is the attitude there what dan you know i think the attitude max in china is it's getting increasingly nationalistic and that's always been there you know they've been educated under the ideology that they've been a victim they were colonized by foreign powers including japan they're very sensitive expression with japanese issue you see when there's issues that stir up in the news media would you pan all the sudden cars are getting overturned in the streets and set on fire we even had several japanese factories set on fire a few years ago so the chinese government to be very careful careful with this. issue of nationalism trying to stir up i think you know the chinese population in general they don't like to get pushed around i think that the media in china will
push it that way that they're getting bullied into getting pushed around and you know when where that leads you're seen massive drops in sales with american companies in china that the automotive industry in particular a few years ago the big 300 traver selling 4000000 cars are only schedule looks like they may go as low as 2000000 to show. so literally half china's not new to trade wars they did this to korea 2 years ago with a lot of department stores when the u.s. moved weapons system into south korea and they moved it onto a golf course that was owned by this company the next day over 60 malls owned by this korean company was shut down for security violation so-called safety so china knows how to use their domestic market as a weapon and that's what i think will continue right so you are of the opinion that this kind of retaliation or reaction or pushback by trump as
long overdue that china and other countries have been taking advantage of the international trade arrangements to america's detriment comes it he recognizes this probably starts to fight back so do you think that we're going to see some success of america's part because the same side we're getting still getting our play what it where you think the prognosis us i think the prognosis long term is good and you know we have 20 or 30 years of this going on it can't change overnight got to happen step by step you see you see areas of the real economy real manufacturing like in steel that is coming back there's a lot of announcements of new plants multibillion dollar investments by steel makers us to get a steel industry back again you know china makes more steel in 6 weeks than united states makes all year we were we were literally pushed out of the steel industry like we've been pushed out of most other industries you don't have a merchant marine we don't have a sheen full industry we're down to carmakers that have 4050 percent of our own
domestic market so the real economy companies have been really suffering or the. long term you know a nation of 30000000 we need jobs and we need to make things work so it doesn't need to be protectionism but you have to go into this with a really practical reality and say if china is a 25 percent duty against us why we should not have a point by the duty again. so this whole trump grade war thing is basically just putting the same policies they have against united states that are united going to put against china so. long term it has to be done i see no other way around all right dan thanks for being on keyser part i should mention that we're going to have me on for other segment and we're going to talk about joe biden his son's business dealings and in china so i think we're going to be breaking some interesting stories there with dan collison spinning on the kaiser report thanks max that's the idea for this edition of the kaiser report with me max kaiser stacy harbor like to
thank our guest and colleagues if you want to reach us on twitter sky's reports and . there's a tense situation in venezuela is still all over the news the problem in venezuela is not that socialism has been poorly implemented but that socialism has been played only implement inside venezuela things look different we're going to announce sanctions against. venezuela so if you. have a son of. the temple. political battle so on the. moment. the whose story is a new nixon holding henry kissinger to tell him that he would not be tolerated in latin america. an alternative economic and social system could take hold
and therefore the policy would be to make. the economy scream so wants to make the economy of venezuela. if you will not obey the voice of the lord your god will be too full to do all the school long months and the statutes which i command you this day then all these curses shall come upon you and overtake you want to lead and then the white people the stolen property and must pretend to black people. they get rid of whites only problems will go one. little folks with and remove the white community as president of the free to the little. white farmers in southern africa go be a day every single day. people being tortured to death expression the elderly people in the wood and don't barf. mania somebody at my phone be enough somebody.
may been me and that is why the course will find themselves affected by credit when we offer to point to one of my means in dreams it's all sweats and a lot of. what are you going to have for dinner should they be done if they need the costume for a night made bad those feelings towards civil war in south africa is even if it's. not a good drug for the drug was there any child not be in the code of europe and to get to. eat. what politicians do usually to. put themselves on the line to get accepted or rejected. so when you want to be president or injury. or somehow want to.
have to try to cross the sea like that before 3 in the morning can't be good get. interested always in the waters in the halls. or signal. in a moment change of attitude u.s. mainstream media now warn of the dangerous precedent being set for journalists by washington's intensified pursuit of julian assange the. president says he's sending more troops to the middle east in speeding up arms sales to the region to keep iran in check. and the netflix show 13 reasons why about a teen who kills himself sparks fresh outrage with critics saying it should be pulled from the platform for romanticising suicide i would guess debate the issue.